Sellers of Eftpos machines have voiced their concerns after Payments NZ announced the removal of devices with obsolete security functions by next year.
The governing body for payment systems confirmed last month that all Eftpos terminals using the PCI 4.x security standard must be replaced by April 30 next year.
The decision, which will affect approximately 19,000 devices, aims to align the payment network with the latest security standards to protect consumers and reduce the risk of card fraud.
The sunset date was first published and communicated to industry in 2017, giving merchants, vendors, and resellers significant time to prepare.
The Eftpos Dealers Association of New Zealand (EDANZ) said that Payments NZ has set the deadline five to seven years earlier than any comparable jurisdictions globally – including the PCI Security Standards Committee, Australia, the US, and all G7 nations.
“This policy is not just aggressive – it’s reckless,” says Steve Batey, chairman of EDANZ. “It’s wasteful, anti-business and completely misaligned with global best practices.”
The association noted that 60,000 POS machines with version 3.x security standard had already been forced into early retirement in New Zealand between 2023 and mid-2024, costing businesses more than $40 million. Meanwhile, such devices are still approved for use in other countries right now and until 2030.
The forced obsolescence of 4.x models next year will cost businesses another $14 million, it continued, adding that these costs will ultimately pass down to consumers.
EDANZ claims that Payments NZ is using 12-year-old guidelines that have not been updated in line with global security improvements.
It argues that a common-sense, globally aligned approach is needed where devices are replaced as per worldwide guidelines.
EDANZ has submitted a formal complaint to Payments NZ and is urging action from the Minister of Commerce and the Minister of Regulation.
The association also demanded that the Commerce Commission, Reserve Bank, and other government departments be granted formal oversight of Payments NZ moving forward.
Payments NZ said it had received EDANZ’s complaint and is responding to it through an established process.
The governance organisation stated that EDANZ’s concerns do not reflect the majority of the industry, adding that it is in regular contact with device vendors, dealers, and resellers to help them prepare for a smooth transition.
“We follow the same practice as payments associations around the world, which set each country’s life cycle dates based on PCI standards and local industry conditions.
“The current sunset date was reconfirmed by our industry management committee for consumer electronic payments, which includes payment switches. We are confident that the timing remains appropriate,” Payments NZ stressed.
“Our main goal is to keep Eftpos secure for New Zealand businesses and consumers who rely on it, in partnership with the industry,” the body added.
